Weekly Economics Wrap 6-13 February 2025: Key Developments in Global and Regional Markets

Namibia: Interest Rate Cut and Oil & Gas Capacity Building

The Bank of Namibia has lowered its key interest rate for the fourth consecutive monetary policy meeting, aiming to support economic growth amid stable inflation projections. On Wednesday, the central bank cut the repo rate by 25 basis points to 6.75%, following similar reductions in its last three policy decisions. The move is expected to provide relief to borrowers while stimulating economic activity.

In the oil and gas sector, the Petroleum Training and Education Fund (Petrofund) and Single Buoy Moorings Offshore have signed a memorandum of understanding to enhance capacity building in Namibia. This partnership underscores their shared commitment to equipping Namibians with the necessary skills to excel in the country’s growing upstream petroleum industry.

South Africa: Impala Platinum Profit Decline and Manufacturing Contraction

South Africa’s Impala Platinum (Implats) has warned of a sharp decline in its half-year profit, citing persistent low metal prices. The company projects headline earnings of 1.65 billion to 1.95 billion rand for the six months ending December 2024, representing a potential drop of up to 49% from the 3.26 billion rand reported previously, according to CNBCAfrica.

Additionally, South Africa’s manufacturing production fell by 1.2% in December 2024 compared to the previous year. The decline was mainly driven by contractions in the motor vehicles and basic iron and steel sectors. However, the food and beverages division provided a positive note, recording a 5.8% increase, reflecting some resilience in consumer demand.

Africa: Nigeria’s Energy Transition and Petrobras’ African Expansion

Nigeria is seeking a partnership with India to advance its energy transition initiatives, a senior government official told Reuters. Governor Agbu Kefas of Taraba State noted that Nigeria requires both funding and technical expertise from India to implement its green energy programs. The collaboration is expected to accelerate Nigeria’s shift toward renewable energy and reduce its reliance on fossil fuels.

Meanwhile, CNBCAfrica reports that Brazil’s Petrobras is looking to expand its oil reserves by acquiring stakes in oil assets in Angola, Namibia, and South Africa. The state-owned energy giant is in talks with ExxonMobil, Shell, and TotalEnergies to secure shares in their African operations as part of its strategy to counteract an expected production decline after 2030.

International: US Jobs Data, EU Trade Disputes, and Asian Market Optimism

In the United States, the latest monthly job growth data has sparked debate, with some analysts interpreting the figures as signs of a slowing job market. President Trump has blamed his predecessor, Joe Biden, for the weaker-than-expected employment numbers, further fueling political tensions over economic policies.

In Europe, European Commission President Ursula von der Leyen has vowed a firm response to the US decision to impose tariffs on steel and aluminum imports. German Chancellor Olaf Scholz has also signaled that the European Union will present a united front in retaliating against the protectionist measures, emphasizing the EU’s economic strength as the world’s largest market.

Asian equities climbed for a second consecutive day on Thursday as US-Russia negotiations raised hopes of a potential resolution to the Ukraine war, according to Yahoo Finance. Investor sentiment also improved due to stronger prospects for Chinese markets. Japanese and Hong Kong stocks advanced despite higher-than-expected US inflation figures, which have tempered expectations of imminent interest rate cuts.

Stay tuned for next week’s economic wrap as we track global and regional financial trends shaping markets and investment landscapes.